Starbucks has embarked on a $1 billion initiative to redesign up to 9,000 of its cafés across North America, aiming to create more inviting spaces that encourage customers to linger. The company plans to transform these outlets into “community lounges,” incorporating features such as leather armchairs, rugs, bookshelves, and other home-like elements intended to foster social connection and comfort.
This strategy marks a departure from the minimalist, efficiency-driven layouts that dominated Starbucks locations in the wake of the Covid-19 pandemic, when the chain removed seating to focus on mobile orders and quick pickups. Now, with in-store dwell time seen as critical to boosting sales of higher-margin products, Starbucks seeks to recapture an atmosphere conducive to human interaction amid rising reports of loneliness and social isolation.
Senior Vice President of Coffee House Design and Concepts Dawn Clark explained that the refurbishments, dubbed “uplifts,” prioritize warmth and a welcoming environment without overhauling major functional aspects of stores. These changes, which include adding diverse seating and softer decor such as curtains and rugs, can largely be completed overnight to avoid business disruption. To date, more than 200 Starbucks locations in the Los Angeles area—the company’s highly competitive market—have undergone the makeover since 2025.
Chief Executive Brian Niccol, who took over the company in 2022, has made improving the customer experience a cornerstone of his turnaround plan. The refurbishment program complements other efforts such as enhanced service speed, friendliness, and new menu introductions. Starbucks also anticipates achieving $2 billion in cost savings over the next two years partly by managing renovation expenses to around $150,000 per store—significantly less than earlier, more extensive remodels.
Despite the focus on creating inviting spaces, Starbucks has faced mixed responses from consumers and analysts. Some longtime patrons welcome the expanded seating and homey touches. Brian Gorski, a Los Angeles personal trainer, praised the redesigned Venice Boulevard store for its “fantastic” atmosphere. Conversely, others note that many customers still treat Starbucks primarily as a quick stop. Gorski contrasted Starbucks with an independent café nearby, where a stronger sense of community and personalized touches prevail.
Industry observers highlight the competitive pressures Starbucks faces from both local specialty coffee shops emphasizing craft and community, and from fast, convenience-oriented chains such as McDonald’s and Dunkin’. Analysts also point out that, during the pandemic and beyond, Starbucks shifted towards optimizing mobile order transactions, which now account for roughly a third of U.S. sales, diminishing the brand’s traditional role as a social “third place.” Danilo Gargiulo, a restaurant analyst, noted that the previous focus on minimizing seating and communal spaces contributed to an anonymous, transactional environment.
Starbucks has recently made key appointments to oversee the design and development effort, including Stephen Piacentini, recruited last year from Chipotle Mexican Grill. The company disclosed over 100 layoffs within its design division last month but indicated these cuts would not affect the rollout of the refurbishment plan, which continues alongside hiring efforts to manage procurement and construction costs.
As the initiative progresses, Starbucks aims to balance diverse customer needs—whether seeking a quiet place to work or a social setting to connect with others. Dawn Clark emphasized that the upgraded environments are designed to be flexible inviting spaces: “Who knows, maybe they’ll strike up a long-time friendship. Or sometimes they’re just in their own space. But they’re comfortable to hang out there.”